Europe’s AI Act: Setting the Rules for Trustworthy Artificial Intelligence 2026
In July 2024, the European Union published Regulation (EU) 2024/1689, better known as the Artificial Intelligence Act. With this move, the EU became the first jurisdiction in the world to introduce a comprehensive, binding legal framework for artificial intelligence. The message is clear: AI innovation is welcome, but it must respect people, safety, and fundamental rights.
The AI Act was created in response to the rapid expansion of AI systems into everyday life. Algorithms now influence hiring decisions, creditworthiness, medical diagnoses, policing, and access to public services. While these technologies offer enormous benefits, they also introduce risks ranging from discrimination and surveillance to unsafe or opaque decision-making. The AI Act aims to address these risks without blocking innovation, by setting clear and proportionate rules.
Rather than regulating all AI in the same way, the Act adopts a risk-based approach. AI systems are classified according to the level of risk they pose to individuals and society. Systems considered an unacceptable risk are banned outright. These include AI used for social scoring, manipulative techniques that exploit vulnerabilities, and certain forms of real-time biometric identification in public spaces, unless narrowly authorised for law enforcement purposes.
AI systems classified as high risk are permitted, but only under strict conditions. This category includes AI used in areas such as healthcare, education, employment, migration, law enforcement, and critical infrastructure. Providers of high-risk systems must ensure high-quality data, proper risk management, detailed technical documentation, human oversight, and ongoing monitoring. The goal is to ensure that these systems are safe, transparent, and accountable throughout their lifecycle.
For limited-risk AI systems, the obligations are lighter and focus mainly on transparency. Users must be informed when they are interacting with an AI system, such as a chatbot or an AI-generated image or video. Minimal-risk systems, like AI used in games or photo enhancement tools, remain largely unregulated, allowing innovation to continue without unnecessary administrative burdens.
Importantly, the AI Act applies not only to EU-based companies, but also to non-EU providers whose AI systems are placed on or used in the EU market. Responsibilities are shared across the AI value chain, covering developers, importers, distributors, and organisations that deploy AI systems in real-world settings.
Beyond compliance, the AI Act has global significance. Much like the GDPR shaped data protection standards worldwide, this regulation is expected to influence how AI is governed far beyond Europe. By embedding principles such as human oversight, transparency, and accountability into law, the EU is positioning itself as a global standard-setter for ethical and trustworthy AI.
Ultimately, Regulation (EU) 2024/1689 reflects a simple but powerful idea: artificial intelligence should serve people, not the other way around. As AI continues to reshape economies and societies, the AI Act represents a decisive attempt to ensure that technological progress remains aligned with human values.
